The Challenge
The owners of a successful veterinary practice wanted to retire and needed help preparing their business for sale. One owner was the main veterinarian, and the other was the hospital administrator. Ensuring the best financial outcome for the owners required strategic, financial, and operational improvements.
- Preparing reliable financial statements in a timely manner
- Differentiating this practice from others
- Getting in line with the competition with fees charged, appointment windows, and operational hours
- Acquiring favorable debt terms and banking relationships
- Presenting a compelling opportunity for potential buyers
The Solution
- Changed bookkeepers and tax preparers to provide more confidence in financial reporting, also freeing up owner/hospital administrator time to focus on higher-level strategic initiatives
- Ensured financials were prepared in accordance with GAAP and properly and consistently maintained
- Focused on improving operational performance and profitability by suggesting solutions to optimize service offerings, update fees, and reduce expenses
- Developed a new banking relationship, refinanced debt to lower interest expenses, and paid off debt early as permitted
The Implementation
- Contacted eight potential buyers, which turned into six suiters
- Secured four strong offers, led negotiations, and doubled an earlier offer, which was initially received without the help of the CFO
- Negotiated long-term leases for the practice locations with the new owner, ensuring ten to twenty years of recurring passive income for the former owners
The Results
- A well-positioned, profitable veterinary practice ready for sale
- Successfully sold to a strategic buyer at double the original valuation
- Secured long-term leases, ensuring the continuity of income stream
- Ongoing financial advisory support for the former owners, helping with personal finance, property management, and investment planning
- Exceeded EBITDA multiples presented by brokers to take this opportunity to market, achieving a significantly higher return